Taxpayers Are Being Held At Bay By U.S. Goverment And Private Investors

As US Banks continue to get more Stimulus money from the U.S. Government, it seems the less they are willing to lend even to qualified borrowers. To this date the banks have consumed about 590 billion dollars of the original 700 billion dollars that were slated for the bailout. Of the 110 billion or so that remains the treasury expects that it could possibly grow by another 25 billion as the banks begin to repay their loans. Undoubtedly this would help as more money will be need by some banks that still have a lot of bad assets on their books. But can you believe the word from the U.S. Treasury is that they will most likely not accept the repayment of these loans because they say it would slow down the recovery period here in the USA. Once again the taxpayers are on the hook. It was my understanding that once the loans were made, the object was to repay them in a timely fashion. Not only that, but the billions of dollars that these banks received were supposed to help stimulate the economy by giving consumer loans. But of coarse these loans never materialized for the average consumer who in this case also happens to be the taxpayer or primary source of the money that comes from the U.S. Government.
The Bad Assets that are being held by these banks are going to be a major catastrophe for the American taxpayer. The U.S. Treasury says it will match dollar for dollar with private investors when the Bad Assets are purchased. And that the market will be set by the public-private sector in which most case will create a conflict of interest. It will also increase the chances for fraud and money laundering through private equity firms, and this could only be the beginning. In the end the taxpayer's risk is many times higher than that of the private parties involved. The Federal Reserves estimate is around another 2 trillion dollars of which half the American taxpayer is on the hook for. And if history has taught us anything it is that the U.S. Government estimates are always on the short side of the balance sheet. Which means that the likelihood of this Bad Asset program costing the American taxpayer 1 trillion dollars is more likely to cost 2 trillion dollars and the overall cost being between 3.5 and 4 trillion.
With these types of figures it is inevitable that some type of criminal activity is going to be involved. Therefore it now become the duty of the U.S. Government to put rules and regulations in place that would protect the American taxpayer from looters and profiteers that seek to exploit the weaknesses in the system. I know it won't stop it all but every little bit helps. After all, we are all in this together whether we like it or not. In closing, everybody needs to do their due diligence. If you see or suspect something a miss just report it, after all it's your money to.
Comments And Frustrations Welcomed!

AIG Just Wants And Wants, But Expects To Give Nothing In Return

The insurance giant AIG has had their problems over the last 6 months or so. Number one, they continue to ask the American taxpayer to give and to give until it hurts, both morally and financially. While they continue down a path of disregard for the American people and their families. The moral crimes they have committed against the people of this country border a fine line between A moral and criminal. But now comes a story out of Oklahoma that has crossed over that line, in this case I would call it incomprehensible and outright despicable.
Back in October of 2004 Mr. John Woodson a truck driver for KBR Contracting, which is a US military contractor in Iraq. Was driving a load of fuel when he hit a roadside bomb, the explosion was so massive that it blew John Woodson through the roof of the truck cab. Now mind you, Mr. Woodson survived that terrible explosion, only to lose his left eye and left leg. In his right eye he now only has 30 percent of vision left. At the hospital in Iraq, he was told that all of his medical, therapy and what ever else was required would be provided for when he returned home to the United States.
Unfortunately for John Woodson the insurance carrier happened to be AIG. Which happens to be the government- mandated carrier for all personnel working for US contractors in Iraq and Afghanistan. The insurance carrier AIG is suppose to provide all medical and disability benefits to these American citizens per the United States Government.
According to Mr. Woodson, since he has been home from Iraq, he has had nothing but problems trying to get AIG to provide any thing that would be considered a necessity to every day life. Which included a new pair of glasses for his right eye which he has only limited vision in, a wheelchair for mobility, and a new prosthetic leg (plastic) so he can take a shower standing up. Now in their greedy infinite wisdom all that AIG would provide was the cheapest and bare minimum that money could buy. All that Mr. Woodson would get from these people at AIG were delays and the runaround. So after a lengthy battle, and with the help of his Lawyer Toby Cole, and Senator Tom Coburn R(OK) the best Mr. Woodson could muster were parts to upgrade his existing prosthetic leg.
When asked to comment about the situation of Mr. John Woodson, all that AIG executive John Russo could say was no comment.
Now it must be me, because somewhere along the way I thought that if you gave you at some point in life would also receive. But in the case of AIG all they want to do is receive and receive taxpayer dollars and expect to give nothing back. They must believe that their bottom line is all that matters, and not human sacrifice. All that AIG Executives saw were heavy paydays, trips and luxuries at the expense of the American people. AIG's time has come and went, and we the taxpayers are not going to stand for these types of despicable behavior anymore. That also includes those ridiculous bonuses that you think were so justly deserved, Ha! We need more compassionate executives at AIG like we need another WAR!
Comments and Frustrations Welcomed!

Wind Of Change Is Upon U.S. Auto Makers GM And Chrysler

It's all done but the crying for GM which was once the world's largest automaker. The same holds true for Chrysler also. The wolves are at their front door steps, just sitting and waiting for their inevitable demise. Their time as leaders in the auto industry has finally come to the end of the road. Even an Act of Congress couldn't save them now. But like the Phoenix those companies will rise again. Although this time they will have new ownership.
In General Motors case, only the strong are going to survive. Already the private equity firm of Black Oak Partners LLC, have offered to buy GM's struggling Saturn division. GM is also trying to rid itself of the Hummer and Saab divisions in order to cut costs so it can get the additional $13.4 billion from the U.S. Government. Now mind you if they could do this, and rid themselves of these three divisions by June 01, 2009, and receive the Stimulus money. It still won't work, all the American taxpayers are doing is throwing good money after bad. In the end, Bankruptcy will be filed, and the only satisfied people will not be their customers, it will be their creditors. For they will have gobbled up every cent of that money, knowing full well that Bankruptcy was going to be declared.
So in saying this, let your Congressmen,Senators and House of Representatives know that you as a voting tax payer will no longer stand for this. Let the circumstances of their actions define what happens to them in Bankruptcy Court. For the U.S. Government have more pressing issues than to become automobile manufactures. Besides I can think of allot smarter way to spend $13.4 Billion Dollars. Like feed the Hungry in this country for one.
Chrysler on the other hand may have a buyer for the whole company. The Italian Automaker Fiat is ready to pony up and buy Chrysler but only if Union concessions are made in the US and Canada. This a sticking point in the deal, and undoubtedly would unravel it if certain concession are not made on both sides of the border. Fiat's CEO Sergio Marchionne believes that he will be able to close the deal by the end of April if everything goes right. But in saying this, he also stated that if their were no concessions from the Unions that there is only a 50-50 chance that the deal would be done. And if there is no sale Chrysler will be forced into Bankruptcy at which point the company will be broke up and sold off.
Now the creditors are sure to be jockeying for position so that they might be granted special vendor status. Which would put them at the top of the list when it comes time to divide what ever assets are left. The time has come, so let the Fire Sale begin. But this time, the American people would like a view from the grandstands, and free of charge at that. Because we have paid for this show way to many times already, and were going to stand our ground and try and not pay anymore.
Comments and Frustrations Welcomed!

The World Sees Somalia In A New Light

Finally, praise to United States Navy Seals for their gallant efforts to rescue Captain Richard Phillips, and the way it was handled. They sent a clear message to the Somali pirates. That if you think about making or carrying out any kind of a terrorist threat against a U.S. citizen or the U.S. Government there will be dire consequences. Also praise to the French for their efforts also. Regardless of the outcome they showed the Somali pirates and world they to would not tolerate any terrorist threats either.
Now I am sure this incident will do little to deter the pirates, at best it might just slow them down a little bit. In other words they might have second thoughts about hijacking an American or French flagged ship. On the other hand it could intensify efforts to capture vessels under these flags only time will tell, and very little time at that.
On to the Islamist insurgents of al Shabaab, these rebels are the land base militant equivalent of the Somali pirates. In retaliation to the handling of the American hostage situation by the U.S. Navy. The insurgents fired mortars at New Jersey Congressman Donald Payne's plane as it left the airport in Mogadishu, Somalia. The Congressman was there on a one day fact finding mission, to discuss aid to Somalia, as well as the country's handling of the pirates. Even though it seems that the Somalian Government has a deteriorating situation on it's hand. The United States held it's hand in friendship to help the Somali's.
Is this what we are to expect from this country. If so, it is not to far fetched that U.S. aggression would be forthright if these pirates and insurgents continue down the path they are on. Continuing to terrorize American seaman and seaman of the world, and undermine any help we the American people are willing to give to their Government as well as the innocents. We already have bases and forces in that region of the world. But in saying this, it must be a joint effort on the part of the other countries and leaders of the world. For they to have a stake in this. After all, the world leaders are not going to let this type of behavior continue. I mean enough is enough, and it finally looks as though the pirates days could soon becoming to an end. And it couldn't be soon enough. We as Americans have more pressing issues at home as well as abroad.
Comments and Frustrations Welcomed!

Death And Taxes

These two things are certain in life. When you are born there is a certainty that eventually you will die, and along the way you will pay taxes. April 15th is that day for most Americans. This is a day that most people fear. Where the fear comes from I'm not sure, I suppose it comes from the fact that if you do not carry your share of the burden big brothers hand will come down on you. Which in return causes havoc with the human psyche. But in reality, you have nothing to to fear but fear itself. That is as long as you do your part, otherwise?
Although it seems as of late, that there is a grass roots movement happening across America. They are called Tea Parties, and are somewhat fashioned after the Boston Tea Party of 1773. There sole purpose is to protest Wasteful Government Spending and inevitably Higher Taxes. Now mind you these tea parties are suppose to be friendly. Although occasionally you will have an over zealous person or persons creating havoc. April 15th will be the day these tea parties will happen across America. So go ahead and tap the Internet to find out where the closest Tea Party is to you.
Believe it or not this grass roots movement has created a cottage industry all it's own. I mean to tell you can practically find everything under the sun that says Tea Party 2009. And since this is in it's infancy stage I'm sure it will happen again next year and possibly in years to come. Not only because the American people are fed up with the way their taxed and the way their money is spent and wasted. Not to mention the fact that there is money to be made every year in holding these tea parties, with merchandise etc.
Look, the U.S. Government should be more worried about what goes on in their backyard than the rest of the world. We the American people support a lot of foreign governments with financial aid, weapons, and food. So that Americans can sleep better at night,and because Americans are humanitarians, so the government says. I say,we are frivolously buying friendships around the world when we should first be taking care of our own. We have people living in tent cites, we have people going hungry everyday this shouldn't happen in America. Not with the resources at are disposal. The United States of America was once the greatest country on earth, and we still can be as long as all of us stick together, that includes all of those up on Capital Hill too.
In closing, take the time and join in on a friendly Tea Party if you can on April 15, 2009.
Comments and Frustrations Welcomed!

Terrorists Off The Coast Of Somalia

Since when does the U.S. Government allow terrorists to dictate terms or conditions of any kind. But that is exactly what the Somali pirates are doing now. The so called commander of the Somali pirates, Abdi Garad said that there would be dire consequences if the U.S. Forces were to attempt a rescue of captive Richard Phillips. This being the case, there are only two options as far as I can see. One is to pay the ransom for the release of Captain Richard Phillips hoping the pirates stay true to there word. The second is to let the military orchestrate a well organized rescue and send out a clear message that the US does not give in to terrorist threats of any kind. Oh and of course there is always an outside chance the families and or elders of these pirates might intervene and get the hostage released. Not a chance, if they release one then they will inevitably have to release others. This will show a sign of weakness, so don't hold your breath.
If the world leaders continue to let these pirates run amok, and the shipping lines continue to pay ransom demands. The problem is only going to escalate into a full blown on war. This is something that the American people, as well as the rest of world does not need or want right now. And in saying this, it is time to stop this problem once and for all.
As I stated in a previous article. the Somali pirates can't be acting alone. The Somalian Government has to be getting a cut from the ransoms. Which by all estimates, was roughly 50 million dollars last year alone. That is one of reasons the government of Somalia has done nothing to deter the seizing of foreign vessels. To take it one step further Sheikh Muktar Robow has stated that the pirates are not wrong for hijacking international ships because they have no reason to use Somalian waters. Not to mention the fact that the government allows the pirates to use Eyl as home base. Further signifying their participation in these acts of piracy.
So again I say will somebody please get the balls to do something about these Somali pirates.
Comments and Frustrations Welcomed!

Auto Makers and Bankruptcy

They say bankruptcy is inevitable for GM and Chrysler, and I say so be it. From the ashes will come a new beginning. A fresh start with a new and improved outlook on the way automobiles are designed and built.
Why should these companies be any different than any other large company in America. If bad decisions are made, and problems arise because of this. The Government doesn't bail them out with ridiculous some of money. So why then should the American people bail GM and Chrysler out. I mean they have already received 13.4 billion to GM and 4 billion to Chrysler. And yet the possibility is extremely high that they are going to declare bankruptcy in the next couple of months. But the companies are still asking for more money, to prolong what everybody already knows is going to happen. At this point in the game there is no way they are going to be able settle with their creditors. The creditors know this, and are trying to recoup every dime they can vie the American tax payer.
Let the bankruptcy happen!. First the fire then the ashes and then the rebirth of a stronger auto nation. The companies can be broken up and sold off into smaller entities, so that only the strong will survive. Believe me the strong will survive they always do.
Now as to the autoworkers they too will survive. There will be an adjustment period, and it will probably last for awhile. But we as Americans always find ways to adapt to our current situations.
Therefore the U.S. Government should hold all remaining funds, and let the American taxpayers off the hook. Haven't we given enough, when and where will this end. The time has come to make a stand and let the chips fall where they may.
Comments and Frustrations Welcomed!